Online Gaming Company Recommended for Nevada Gaming License Caught Rigging Online Games

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GTech, a subsidiary of Lottomatica (which was recommended for an online gaming license in Nevada two weeks ago), was caught rigging the odds against players in connection with two of its video poker offerings – Reel Deal and Hi/Lo Gambler.

The games in question touted a 100% pay back rate for players but, due to the GTech game coding, the actual rate was approximately 96% (this represents a 4% house edge, while the games were marketed as having no house edge at all).

It remains to be seen to what extent Lottomatica’s bid for an online gaming license to create and distribute online poker games will be impacted by the dubious actions of GTech, but it is likely that Lottomatica’s prospects will be significantly hindered.  Considering that such a scandal will greatly impact the public’s trust in games produced by Lottomatica (and its family of companies), it would not be surprising to see the Nevada Gaming Control Board deny Lottomatica’s application.

The Nevada Gaming Control Board’s ultimate posture will be of interest to all gaming attorneys and those interested in Internet poker law in general.

If you are interested in learning more about this topic or pursuing a venture in this area, please feel free to contact us.

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David O. Klein

David O. Klein

David Klein is one of the most recognized attorneys in the telemarketing, technology, Internet marketing, sweepstakes and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.

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